Carbon Capture & Storage Market - Cumulative Impact of United States Tariffs 2025 - Global Forecast to 2030

The Carbon Capture & Storage Market size was estimated at USD 7.09 billion in 2024 and expected to reach USD 7.73 billion in 2025, at a CAGR 9.67% to reach USD 12.34 billion by 2030.

Carbon capture and storage (CCS) has emerged as a strategic solution in the global push to mitigate carbon emissions and achieve net-zero targets. As international climate commitments tighten and corporate sustainability pledges proliferate, CCS technology has progressed beyond pilot-scale tests into commercial rollouts. Capturing CO₂ at industrial sources, transporting it via purpose-built infrastructure, and securely sequestering it in geological formations or utilizing it in value-added products are now recognized as essential pathways to decarbonize energy-intensive sectors such as power generation, cement production, and steelmaking. Public–private partnerships, coupled with innovative financing models, are unlocking capital for large-scale projects, while advancements in capture solvents and monitoring systems are driving down operational costs. However, the path to widespread deployment remains complex, facing technical, regulatory, and supply-chain challenges. This executive summary synthesizes the latest market dynamics, assesses the policy and trade environments, and delivers concise insights on segmentation, regional strengths, and leading players. With an emphasis on actionable takeaways, it equips executives and investors with the clarity needed to navigate risks, seize emerging opportunities, and formulate robust growth strategies in the rapidly evolving CCS landscape.

In recent years, several transformative shifts have redefined the CCS value chain. First, policy frameworks worldwide have matured, with expanded tax credits, carbon pricing mechanisms, and direct funding schemes fueling demand for capture and storage solutions. The US Inflation Reduction Act and the European Green Deal emerge as catalysts, incentivizing both retrofits of existing power plants and greenfield installations. Second, capture technologies have advanced rapidly. Novel amine-based solvents, membrane separators, and cryogenic processes are enhancing capture efficiency, while modular designs support faster deployment and lower capital outlays. Third, digitalization is optimizing project performance: remote sensing, AI-driven reservoir modeling, and real-time monitoring platforms reduce operational risks and ensure regulatory compliance.

Meanwhile, storage site development is benefiting from improved subsurface characterization techniques and more robust risk-management protocols. Enhanced oil recovery operations are demonstrating the dual economic and environmental gains of injecting CO₂ into mature reservoirs. Simultaneously, cross-industry alliances are forging integrated transport corridors, streamlining logistics between capture facilities and sequestration hubs. Taken together, these shifts are driving down costs, bolstering investor confidence, and laying the groundwork for CCS to scale as a mainstream decarbonization solution across sectors.

The 2025 implementation of expanded US trade tariffs on steel and aluminum imports has reverberated across the CCS supply chain. Equipment manufacturers, project developers, and engineering contractors have faced higher input costs, particularly for pressure vessels, piping, and specialized capture modules. As a result, capital expenditures for new capture plants have increased by an estimated 8–12 percent. To mitigate these effects, some stakeholders have accelerated localization strategies, partnering with domestic fabricators to secure lower‐cost steel and aluminum and reduce exposure to cross‐border duties.

Moreover, tariffs have spurred innovation in alternative materials and design approaches. Engineering teams are exploring composite materials and advanced alloys that maintain structural integrity while lowering weight and cost. In parallel, project timelines have adapted: procurement cycles now incorporate strategic hedging mechanisms and longer lead times for imported components. Despite near-term price pressures, the reshuffling of global supply chains may ultimately enhance resilience and foster a more diversified manufacturing base in North America. Consequently, while tariffs present headwinds, they also create incentives to refine procurement strategies, adopt novel materials, and cultivate local supplier networks—actions that can strengthen the CCS ecosystem for the long term.

A detailed look at market segmentation reveals divergent growth trajectories across service, technology, and end-use dimensions. On the service front, capture solutions continue to command the largest share as industrial emitters upgrade facilities to meet emissions targets. Meanwhile, demand for sophisticated monitoring services is accelerating, driven by stringent regulatory requirements and the need for real-time verification of subsurface storage integrity. Storage services are expanding rapidly in regions with suitable geology, and transport infrastructure development is gaining momentum to connect dispersed capture sites to centralized sequestration hubs.

From a technology perspective, post-combustion capture remains the workhorse of the industry, prized for its compatibility with existing flue gases. Pre-combustion technologies, although more capital-intensive, are gaining traction in integrated gasification combined cycle (IGCC) applications, particularly in large power and hydrogen production facilities. Oxy-fuel combustion capture occupies a growing niche, offering high-purity CO₂ streams for applications such as chemical feedstocks.

In terms of end-use industries, cement facilities are increasingly integrating capture modules to address their hard-to-abate emissions. Chemicals and petrochemicals producers are deploying CCS at scale to decarbonize feedstock processing. Iron and steel makers are advancing pilot programs to retrofit blast furnaces, while oil and gas operators leverage CO₂ for enhanced oil recovery and underground storage. Power generation projects round out the portfolio, with utility‐scale plants pursuing capture to align with net-zero ambitions.

Regional analysis underscores distinct leadership patterns and growth drivers. In the Americas, substantial federal incentives and established enhanced oil recovery markets underpin robust activity along the Gulf Coast corridor, where large-scale capture and storage hubs are already under construction. Canada complements US momentum with provincial carbon pricing schemes that encourage uptake in the industrial heartland. Across Europe, Middle East & Africa, the EU’s Emissions Trading System and the UK’s complementary support mechanisms are fueling a cluster of storage projects in the North Sea region. In the Middle East, sovereign wealth funds and national oil companies are reallocating capital to CCS as part of broader energy transition portfolios, while Africa remains in the early exploration phase, with pilot projects emerging in South Africa and Egypt.

Asia-Pacific is characterized by ambitious emission reduction commitments and diverse project pipelines. China leads in deployment volume, targeting capture integration at coal-fired power stations and heavy industries. Japan focuses on innovative applications such as ammonia production with CO₂ capture, and Australia advances large storage developments in onshore sedimentary basins. Together, these regions reflect a global tapestry of policy incentives, resource endowments, and strategic priorities shaping the future of CCS.

Leading companies are forging competitive advantages through technology innovation, strategic partnerships, and project execution excellence. ABB Ltd. continues to expand its digital monitoring and control solutions, enhancing real-time visibility across capture and storage operations. ArcelorMittal S.A. is steering decarbonization in the steel sector by integrating capture modules directly into blast furnace workflows. Baker Hughes Company leverages its compression and turbomachinery expertise to optimize CO₂ transport networks. Carbfix hf. in Iceland pioneers direct mineralization storage, demonstrating rapid, permanent CO₂ binding in basalt formations. Similarly, Carbon Clean Solutions Limited offers modular, low-footprint capture systems that accelerate deployment timelines.

Carbon Engineering Ltd. by Oxy Low Carbon Ventures, LLC is advancing direct air capture at commercial scales, while Chevron Corporation anchors large-scale hub developments through multibillion-dollar investments. Climeworks AG drives decentralized direct air capture in Europe, partnering on co-location strategies with geothermal and renewable energy assets. COWI A/S delivers end-to-end engineering consultancy, blending subsurface modeling with infrastructure design. Eaton Corporation plc supplies high-performance separation and pumping equipment, and Exxon Mobil Corporation is executing some of the largest integrated CCUS facilities in North America.

Fluor Corporation secures major EPC contracts by coupling process expertise with modular construction methodologies. GE Vernova Group integrates capture readiness into next-generation gas turbines. Halliburton Energy Services, Inc. leads in well completion and reservoir characterization for storage sites. Hitachi, Ltd. collaborates on ammonia production with built-in CO₂ capture, and Honeywell International Inc. supplies advanced process controls and digital twins. Japan Petroleum Exploration Co., Ltd. invests in in-country storage hubs, while LanzaTech, Inc. focuses on carbon recycling via microbial fermentation pathways. Linde PLC underpins gas separation and liquefaction, and MAN Energy Solutions SE by Volkswagen AG develops specialized CO₂ compressors.

Mitsubishi Heavy Industries, Ltd. equips power plants with integrated capture boilers, and PTT Exploration and Production Public Company Limited. pioneers Southeast Asia’s first large storage projects. SAIPEM SpA delivers offshore engineering solutions, Santos Ltd. integrates CCS into LNG value chains, and Saudi Arabian Oil Company channels capital into mega-storage schemes. Schlumberger Limited leverages digital reservoir tools to optimize injection strategies, and Shell plc. operates the world’s most advanced commercial CCS facility. Siemens AG enhances electrification and automation, Technip Energies N.V. delivers carbon capture process licensing, The EPCM Group drives project management excellence, and TotalEnergies SE invests across capture, transport, and storage value chains.

To capitalize on emerging opportunities and overcome persistent barriers, industry leaders should adopt the following strategic priorities:

First, accelerate collaboration with technology developers to co-create next-generation capture solvents and modular systems that lower capital and operating costs. Second, engage proactively with policymakers to shape supportive carbon pricing and tariff structures that de-risk large projects and incentivize supply-chain localization. Third, diversify procurement strategies by forging partnerships with domestic and international fabricators, while exploring advanced materials to mitigate commodity price fluctuations. Fourth, leverage digital twins, AI-driven analytics, and remote monitoring platforms to enhance operational visibility, optimize performance, and ensure compliance with evolving regulations. Fifth, pursue integrated project development models that bundle capture, transport, storage, and utilization services under a single delivery framework, thereby streamlining financing and execution. Finally, explore joint ventures with end-use industries to co-invest in CCS hubs, aligning the economic interests of power, cement, steel, and chemical producers in shared infrastructure.

Carbon capture and storage stands at a pivotal juncture, poised to deliver meaningful emission reductions across hard-to-abate sectors. While technological innovations and policy incentives are unlocking momentum, successful scaling will hinge on strategic alignment among governments, investors, technology providers, and end-users. By internalizing lessons from early deployments, optimizing supply chains, and forging inclusive partnerships, stakeholders can accelerate the transition from demonstration projects to commercially viable solutions. The insights presented herein offer a roadmap for navigating the complexities of the CCS ecosystem and capitalizing on the significant decarbonization potential ahead.

For executives seeking deeper market intelligence, proprietary data analysis, and tailored strategic guidance, contact Ketan Rohom, Associate Director of Sales & Marketing, to secure the full Carbon Capture & Storage market research report. Unlock comprehensive insights, detailed profiles, and actionable recommendations that will empower your organization to lead in the global decarbonization journey.